5 Criteria for Pricing your Home

When listing your home for sale, one of the best ways to determine the asking price is to look at comparable sales within your area (comps as we call them in the biz). Comparable does not mean exact, as there are rarely multiple homes that have precisely the same layout and amenities to compare, however, I look at the closest matches that have recently sold in your area.

Here are five criteria that I will look for in my comps.

1. Location: Homes in the same neighborhood typically follow the same market trends. Logically, you would not rely on a home located in a neighborhood in another county or even 10 miles down the road, to be indicative of the what the homes in your community are selling for. For instance, the neighborhood 10 miles down could have water access, or be 10 minutes from all major highways or other amenities that yours may not, or vice versa. I prefer to compare your home to another in the same neighborhood or even better, the same street or block!

2. Date of Sale: It varies by location, but housing markets can see a ton of fluctuation in a short time period. It‘s best to use the most recent sales data available.

3. Home Build/Style: I look for homes with similar architectural styles, numbers of bathrooms and bedrooms, square footage, and other basics. Again, you cannot assume a 3 bedroom,1.5 bath townhouse would have the same sale price as a 5 bedroom, 3 bath single family home on 2 acres. It really depends on ALL criteria.

4. Upgrades, Amenities and Features: I look for similar improvements and modernizations. Remodeled bathrooms and kitchens can raise a home’s price, but so can less flashy upgrades like a new roof or HVAC system.

5. Sale types: Short sales or foreclosures are usually in distress or sold at a lower price than they’d receive from a traditional sale. I personally try not to use these as good comps for listing a property.

Listing your home is one of the most important decisions you can make. I understand the desire to achieve the best value for your investment and that all of this can be a bit overwhelming. I hope this information gives you the knowledge you need to make the best determination moving forward with the sale of your home.

Call me if you have any questions, I'd love to assist you with the sale of your home!